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Title: Suppose a risky security pays an average cash flow of $100 in one year. The risk-free rate is 5%, ... Post by: johnpaech on Nov 19, 2017 Suppose a risky security pays an average cash flow of $100 in one year. The risk-free rate is 5%, and the expected return on the market index is 13%. If the returns on this security are high when the economy is strong and low when the economy is weak, but the returns vary by only half as much as the market index, what risk premium is appropriate for this security?
A) 4% B) 6.5% C) 9% D) 11% Title: Re: Suppose a risky security pays an average cash flow of $100 in one year. The risk-free rate is ... Post by: pbrown223 on Nov 19, 2017 Content hidden
Title: Re: Suppose a risky security pays an average cash flow of $100 in one year. The risk-free rate is 5%, ... Post by: johnpaech on Aug 1, 2018 Thanks for helping with my corporate finance course
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